Which of the following financial strategies is most appropriate for a low-cost-differentiation business?
A)Lower financial costs by borrowing when credit costs are low and issuing stock when the market is high.
B)Emphasize specialized quality of operations when the cost of doing so is relatively low.
C)Emphasize obtaining resources and funding output improvements or innovations,even when financial costs may be high.
D)None of the above.

Question

Quizplus · Accepted Answer

A low-cost-differentiation business aims to provide products or services with unique features at a low cost. Therefore, emphasizing specialized quality of operations when the cost of doing so is relatively low would be the most appropriate financial strategy. Lowering financial costs through borrowing or stock issuance and obtaining resources or funding output improvements may not be the best choice for a low-cost-differentiation business as it may undermine the competitive advantage of providing unique features at a low cost.

Which of the Following Financial Strategies Is Most Appropriate for a Low-Cost-Differentiation